Coyle was sacked earlier this month after Bolton's poor start to the season, but after it was reported that Freedman was favourite for his old job, Coyle was quick to tell the 38-year-old that he had enjoyed his tenure at the Reebok Stadium.
Freedman said: "Owen's a good man, I've known him for many years and he spoke very highly of the club.
"He was really thrilled that I got the call. He was, without pushing me towards the job, telling me just how good a club it was - how well it's run and not to always believe what you hear in the papers with the financial side.
Freedman added: "I know he's a good man so that was important in my decision."
The former Crystal Palace boss saw his new side lose 2-1 at Middlesbrough on Saturday.